Hot Research

PayPal Pact With Discover to Pay Off

EBay's unit will offer PayPal transactions where Discover is accepted.

August 23, 2012

EBay (EBAY: Nasdaq) By Caris & Co. ($45.85, Aug. 22, 2012)

This morning, eBay announced it had reached an agreement with Discover Financial Services that would enable PayPal customers to complete transactions using their PayPal accounts at any merchant where the Discover card is accepted.

Given that Discover (ticker: DFS) had fiscal 2011 credit-card volume of about $108 billion, and has 95% penetration in the U.S., we...